What is 711?
711 is a grocery store chain that provides food and drinks for people, mainly located near gas stations. ..
History
In 1927, the first store was opened in Dallas. The company was started by two brothers and their friends and it wasn’t until 1947 that the company name changed to 7-11. The initial days were tough for the company as there were no such customers, but as the idea was liked by the people around, sales grew at a rapid rate. The company name 7-11 was given in the year 1947.
In 1931, when the Great Depression was in full swing, a small store in downtown Los Angeles called The Store offered only local drinks and foods to help people get by. But despite the tough times, the company managed to survive and grew rapidly over the next few years. In 1938, they opened their first store outside of Los Angeles County- in San Francisco. The concept was well-received and today, The Store is one of the world’s largest food retailers with a valuation of over $10 billion. ..
What are the prices of 7-Eleven products?
Why is 7-11 so expensive?
The reason behind the high prices of 7-11 outlets is that they sell a limited number of products, compared to their competitive stores.
Convenience
The second reason behind 7-11 outlets’ being so expensive is because they are more convenient. Many people visit 7-11 stores to just take small things or only 1 item, and thus to earn more profit and maintain their expenses, they charge around 10% more than the other stores. Some 7-11 stores also have ATMs, and people often just visit the store to purchase any item, so they need to charge more.
Most 7-11 stores are open for the whole night and full day, so customers can buy small items without feeling too uncomfortable. If the store is not open for a certain period of time, it may be because the business is losing money. In order to maintain the cost, some items in 7-11 stores may be priced higher than others.
Marketing
The 7-11 team of management spends a lot of money on advertising, as their stores are in numerous countries and to be known to more people and increase their customer base, the company spends a large amount of their income on advertising their products through various platforms. We are fully aware that today’s advertisements have become expensive for a small ad on TV, businesses need to pay a large amount.
To keep the flow of advertisements coming, store outlets are increasing the prices of certain goods. ..
Machine Maintenance
Many stores in the United States have large numbers of machines that are used for food items like noodles or items that need to be fresh and warm, and thus the maintenance cost of these machines is high. To maintain the cost they need to increase the price of certain goods in their store.
Rental
A large amount of income from stores goes into rent as the company has stores in many parts of the world and, for more convenience, it has 60,000 different stores in different countries. The store is located at a rent and depending upon the place in which the store is located, some stores have very high rents. If accumulated together with the rent on these stores, the company will go into a loss. To maintain this level of income and not go into a loss, the company charges more on certain items to maintain their outflow. ..
Transportation
The company purchases many items from different warehouses and also some of their exclusive items are imported from different nations. In this transaction, the company needs to pay a large amount of money in taxes and import-export services and to maintain their profit, the prices are high.
Extended hours
The 7-11 stores are open throughout the day and night after increasing their work shifts from 7 a.m. to 11 p.m. Some stores at gas stations are open for 24 hours and 7 days, and a single person can’t work for that much time, so they have different people in their stores. The salaries of these people are also good, and to maintain that much workforce and give customers an optimum experience in their stores, they charge more.
Note
The prices of some items in 7-11 stores have been increased, but the prices of other items are not. The normal prices are cheaper than in the local markets.
7-11 is a grocery store that is available in many countries and many cities. They offer food and beverages and different grocery items in their store. It was founded in the year 1927 and since then it has gone through many changes and many things have been added to these outlets. The prices of certain goods in 7-11 are often high as compared to the local market, but they make an effort to reduce these prices by offering a wide variety of products at different prices. Additionally, 7-11 tries to maintain a workforce that is reliable and affordable, so that people can shop for groceries without breaking the bank.
